The "big tradeoff" refers to
A) producing capital goods instead of consumable goods.
B) marginal benefit versus marginal cost.
C) efficiency and fairness.
D) taking an economics course instead of some other course.
E) using market prices rather than a command system to allocate resources.
C
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Which of the following is true about the consumer price index?
A) It is updated continuously to account for the introduction of new goods. B) It accounts for people switching away from goods whose prices have risen. C) It assumes that consumers purchase the same quantity of each product in the market basket each month. D) It accurately reflects quality changes in goods and services over time.
Which of the following is true for perfect competition, monopolistic competition, and monopoly?
A. The product of all firms is homogeneous. B. Firms will earn zero economic profits in the long run. C. Short-run profits are maximized when marginal cost equals marginal revenue. D. Price is greater than marginal cost at the profit-maximizing quantity.